J R

The reason you have a million realtors in this country is that everyone eyes the 6% commission and doesnt realize its easy work.
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Actually, the reason we a million realtors is because everyone looks at the 6% commission and doesn't realize 1. it's HARD work (it's hard to get listings, it's hard to get buyers and it's hard to close sales) and 2. you aren't going to get the entire 6% in your pocket. - A few minutes ago

Besides how can JR counter the fact that ( V'c (F) > O,Vnc (F) O, and W' (F) > O (F) ) ????? ; )
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Hmm.. . let's see now. . . ought from ought equals ought. . . .
(Channelling Jethro Clampett) - Thu Nov 12 2009, 17:06

What do you think I am, Rock, a speed reader?! :)

It's been my own experience in my area that the flat fee listings are much more overpriced across the board. Of course I must add that it is my opinion that most of the regular listings around here are also overpriced. Perhaps it is just a characteristic of my own location and the ineffectiveness of most agents here, or at least the disconnect from reality that some seem to have. Maybe in the 3 areas they sampled it is different, I am speaking from my own experience. - Wed Nov 11 2009, 20:01

Thanks for the link, Rockinblu. I noticed this statement "Using data from three markets, we find that houses listed using flat-fee agents have longer expected times-to-sale than observably similar houses sold by full-commission agents, but ultimately sell for similar prices. These results are consistent with allegations that traditional agents steer clients away from flat-fee-listed homes, although we consider other possible explanations."

IMO the "other possible explanation" is that flat fee listed homes, like FSBOs, usually start out overpriced.

Oh, and Dunes. . .. thanks for the compliment! YOU get a thumbs up! :) - Wed Nov 11 2009, 19:16

Guy: So then your previous comment was applicable in Texas but not NY. - Sun Nov 1 2009, 19:22

I can call 10 agents today and ask a question about a provision in our promulgated contract form, or contract law, or surveys, or title commitments, etc. and 9 of them won't have a clue what I'm asking them.
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I don't know how it is where you are but where I am answering those questions is the job of the attorney. I'd be accused to practicing law without a license. - Sun Nov 1 2009, 17:44

Most flat fee listings I see instruct people to call the homeowner. In these cases the "listing agent" doesn't do any representing at all, of buyers OR sellers. There are flat fee companies that actually show the home to buyers? - Sun Nov 1 2009, 12:37

Jefferson, referral agents can't list on their own because they don't belong to the local board of realtors (no MLS access), and they don't have errors and omissions insurance. They are licensed though, so they can be paid a referral fee.

Pamela, one thing I do offer is, if I bring the buyer also, I will take 1 percent less. Perhaps your agent will do that. As far as advertising in the local paper, don't fall for that. Sellers always ask me where I wil advertise, and I say I do no print advertising. We ask all our buyers where they saw the listing and they RARELY RARELY RARELY say in the newspaper. Buyers come through the internet or another agent. - A few minutes ago

Oh I just saw you are a REFERRAL agent, I see why you feel as you do. - Earlier today

IMO if the home had been listed at the correct price it would have sold or there would have been activity. I now see you penalizing your current listing agent who has worked on the listing 6 months. You say you are in the business, you don't seem to be aware of what a listing agent does. You say she has never shown the house. I have sold lots of listings that I have never shown. You say she didn't do an open house. You ought to know an open house is not an effective way of selling. That said, I have frequently taken expired listings away from an agent at a HIGHER commission. As an agent you should know that those callers are just trying to buy your listings. The only time I have reduced my commission is if I've had a dry spell and need a listing, and I'm always sorry I did, but you can ask your agent to reduce their commission.

On a related note, I took on an expired and the homeowner, who wanted me to reduce my fee suggested that if I sell the home in 30 days she'll give me 6%, if it takes 90 days she'll pay me 5.5%, if it take 120, 5%. . . . I asked, let me see if I understand, the longer and harder I work, you want me to be paid less. How about this, if I sell it in 30 days you pay me 5%, 90 days 5.5% and after that 6. Needless to say I did cut my commission but only by a .25%. There are lots of numbers between 5 and 6. And I did get the home sold. - Earlier today

Sure Horace, er .. . . Gabe. . . , raise the price to get the attention of. . .. whom? Brokers who will email each other comments like "here's another overpriced dog from Gabe"? I've had sellers who get what they consider lowball offers tell me "I think I'll take my house off the market and then put it back on in a couple of months at a higher price". I don't know what their thinking is here, but I expect sellers to not really "get" the market, being that they aren't in it, in in the sense that yes, their house is for sale, but no, they don't go into hundreds of homes and hear buyers' comments. Anyway, Gabe or Horace, please do try this and get back to us when your listing expires and you put it back on at an even higher price. - Earlier today